The Florida Senate's Banking and Insurance Committee opened debates on Tuesday over the proposed 14.5% rate hike proposed by the group in charge of proposing insurance rates in Florida, NCCI (National Council on Compensation Insurance Inc.).
Luckily, Florida's lawmakers have not been influenced by the go-to soundbite from special interest groups claiming that the proposed increase can be blamed solely on attorney's fees. Senators Greg Steube and Gary Farmer, Jr. shifted the focus onto NCCI and the system in place for determining insurance rates in Florida. Rather than having a competitive marketplace between insurance carriers, which is the norm in a majority of states, the power lies solely within NCCI to propose increases in insurance rates on behalf of all insurance carriers. (And as we have seen, determine those increases behind closed doors).
Senators Steube and Farmer indicated their support for a system where the insurance carriers compete for business by proposing their own rates, rather than the current system where all carriers charge the "common rates" proposed by NCCI and accepted by the Office of Insurance Regulation.
As Henry Ford once said, "Competition is the keen cutting edge of business, always shaving away at costs."